All Forum Posts by: Ben M.

Wondering if I should pursue a a Triplex property in Houston that is in a 500 year floodplain? It was never flooded not even during hurricane Harvey….

500 year does not seem to sound too bad and it was never flooded. Is this a bit too risky and would it be harder to sell this later on?

I am selling my property which has a 73k loan left on it. The loan is in good standing and no late payments. Below is an offer on my property. Will subject to transactions affect my credit in any way or put a dent on my financial record in any way?

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OPTION 1: Subject to - Taking Over Owners Existing Loan

Purchase Price: 140,000
Down Payment: Loan amount - purchase price = down payment

Terms for the remaining Balance: Buyer to pay out at closing Seller’s equity and bring any late payments current (if any), in addition buyer takes over seller mortgage and monthly payments. Buyer Pays all closing costs; (Give me a call or text for further details)

Seller Walks away with: (Remaining Equity)

OPTION 2: Subject to - Taking Over Owners Existing Loan With Owner Finance of 3 years

Subject to - Taking Over Owners Existing Loan

Purchase Price: $150,000.00

Terms for the remaining Balance: Bring any late payments current (if any), in addition buyer takes over seller mortgage and monthly payments.

Seller Finance of 3 years (Financing Half of Sellers Equity)

Down Payment: Half of Seller’s equity

Terms for the Seller Finance remaining Balance: Seller to carry back balance of Remaining Half of Seller's equity @ 5% APR with Monthly Interest and Principal Payments with a 3-year balloon. Buyer Pays all closing costs; (Give me a call or text for further details)

Seller Walks away with: (down payment + equity that was financed)



NOTE: BUYER WILL ALSO ATTACH A PERFORMANCE DEED WHICH THE SELLER HAS THE RIGHT TO TAKE
BACK THE PROPERTY INCLUDING THE DOWNPAYMENT, OR EQUITY GIVEN AT CLOSING AS WELL ANY
IMPROVMENTS THAT HAVE BEEN MADE TO THE PROPERTY. IN ADDITION, IF BUYER IS UNABLE TO
PERFORM ON MONTHLY PAYMENTS AS AGREED, THIS IS ATTACHED TO GIVE SELLERS A SAFTEY NET
AND PROTECTION THROUGHT THE TRANSACTION!

Would a seller finance hurt my credit or loan approvals in the future?

 Thanks Eliott! This makes sense

 Thanks Jeff! The mortgage is 73k. So this might make sense if they make the downpayment at 73k...

I have an owner finance offer in my property below and not clear how this would work.

1) Are they saying that I will be fully paid in 5 or 8 years? So the monthly payment would change later on? I guess that’s what the balloon payment is?

2) Will my existing loan be transferred to another provider?

3) I am currently in escrow which includes insurance and taxes, so the buyer should then be paying for the insurance and taxes is that right so I would have to have a different loan?

4) What are some things to watch out for with these types of transactions?

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OPTION 2 (Owner Finance) with a 5-year Balloon Payment:

Purchase Price: $165,000 

Down Payment: $37,000

Terms for the remaining Balance: Seller to carry back balance @6% APR with Monthly Interest and Principal Payments of $767.42 with a total amount of $205,155.02 being made in 5 years by Seller.

Amortized Over 30 years with a 5-year 

BalloonBuyer Pays all closing costs

OPTION 3 (Owner Finance) with a 8-year Balloon Payment:

Purchase Price: $170,000

Down Payment: $45,000

Terms for the remaining Balance: Seller to carry back balance @ 8% APR with Monthly Interest and Principal Payments $917.21 with a total amount of $246,700.62 being made in 8 years by Seller.

Amortized Over 30 years with a 8-year Balloon

Buyer Pays all closing costs To close in 30 days or less.

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Just wanted to update everyone. My hard money lender responded and they did say they could get the appraisal done within 7 days!

Very helpful feedback everyone! Thank you!